AUD/USD decent support emerges at 0.7874/36 – Commerzbank

Occasional dips in AUD/USD should stay well supported in the 0.7874/36 band, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“AUD/USD has eroded its 200 week ma at .8004 and is attempting to gain a foothold above here. The market has eroded the .8004 200 week ma but has not sustained the initial break higher. We have TD resistance at .8097/.8100 and divergence of the daily RSI and it is possible that this will hold the initial test. However dips lower should remain well supported by .7874/.7836 the April 2016 high. While above the uptrend at .7710 we will assume it is capable of further gains longer term. Above .8100 targets the .8162/66 May 2015 peak and 50% retracement and this is capable of holding the initial test. Above here lies the .8295 January 2015 high”.

“The market has broken higher from a large triangle formation that targets eventually .8715 (one year + target)”.